Through its latest acquisition, BlackRock Real Assets has entered the Taiwan solar market. BlackRock acquired the entire equity interest in a 59-MW solar portfolio comprising 28 projects in Taiwan from J&V Energy Technology Co. (J&V Energy), a solar energy producer headquartered in Taipei.
According to a report by The Asset, “This acquisition reinforces BlackRock’s commitment in the solar space, particularly in Taiwan – a growth market for renewables.”
The assets were acquired through a private fund managed by BlackRock Real Assets, which invests in wind and solar assets globally. The transaction marks the team’s first investment in Taiwan’s renewable energy market and first-ever floating solar acquisition.
The portfolio consists of operating and construction projects expected to be fully operational in 2019, with New Green Power (NGP), a leading solar developer and operator, continuing to provide engineering, procurement and construction (EPC) as well as long-term operational and maintenance services. The portfolio offers stable and long-term income for investors on the back of securing 20-year feed-in-tariff (FiT) contracts with an investment grade off-taker.
Head of BlackRock Taiwan Leo Seewald said, “We are pleased to add renewable power capabilities to our local investment platform and strengthen BlackRock’s presence in Taiwan, while supporting the market’s transition to renewable energy.”
J&V Energy CEO Kai Tan said, “The agreements with BlackRock and New Green Power are an important step in our portfolio strategy and demonstrate the growing maturity of Taiwan’s secondary market for renewables. The arrangement frees up capital for further investments and enables J&V Energy to continue to originate additional opportunities to create long-term value for our shareholders.”
Recently, Global Energy & Power Infrastructure Fund III (GEPIF III), a BlackRock Real Assets power and energy infrastructure fund, secured $1.5 billion in commitments from prominent institutional investors in North America, Middle East, Europe and Asia, subject to certain post-closing conditions.
Solar project M&A activity has been robust. According to Mercom’s Q2 2018 Solar Funding and M&A Report, generating solar assets continue to be a sought after investment class. Project acquisitions were up in the first half of 2018 with 117 deals compared to 101 deals in the first half of 2017. Over 70 percent of the acquisitions were made by investment funds.